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KUWAIT CITY, July 23: Ahli United Bank (AUB) announced its results for the first six months of year ended June 30, 2023, achieving a net profit of KD 20.5 Million compared to KD 20.2 Million of net profits recorded for the same period last year, with an increase of 1%. The Bank also recorded total operating income of KD 42.7 Million in H1 2023 vs. KD 46.4 Million in H1 2022.
Total Assets reached KD 4.54 Billion at the end of June 2023, lower than KD 4.71 Billion recorded as in December 2022. The Financing Receivables at the end of June 2023 reached KD 3.28 Billion vs. KD 3.41Billion the end of December 2022.
In addition, AUB has maintained a solid capital adequacy ratio of 18.32% as of June 30, 2023, which is comfortably higher than the CBK’s current minimum required ratio creating opportunities for future expansion in credit facilities, businesses and operations.
As of June 30, 2023, the Bank’s return on average equity (ROAE) recorded 8.4% and return on average assets (ROAA) recorded 0.9%. Earnings per share recorded 7.5 fils per share in H12023 (7.4 fils in H12022).
Commenting on the financial results for the first half of 2023, the Chairman of Ahli United Bank, Dr. Anwar Ali Al-Mudhaf, said: “The operational environment still experiences a state of uncertainty. Nevertheless, we continue our cautious efforts to leverage the available opportunities at the operational environment in Kuwait.”
Al-Mudhaf added, “The financial indicators achieved by the bank have reflected the solidity of its financial position and its ability to maintain a satisfactory level of profitability, relying on a conservative strategy and low risk appetite. This is in addition to the bank’s balanced performance and its ability to sustain growth.”
Dr. Al Mudhaf emphasized that AUB managed to end the first half of the fiscal year 2023 with acceptable financial results. This is attributed to the bank’s resilient and balanced business strategy, its solid financial footing and the prudent strategy on which the bank is relying, and its solid banking capabilities. Dr. Al-Mudhaf emphasized that the bank is committed to implement robust governance principles and to pursue its ongoing efforts to support various segments of society through its ambitious corporate social responsibility program
Dr. Al-Mudhaf expressed his gratitude to the bank’s shareholders for their continuous support to the bank. He also extended sincere thanks to the bank’s valued customers for their persistent loyalty, trust, and interaction with more apt services provided by the bank in response to the changes of life, especially digital banking services with their ability and resilience in meeting their needs and aspirations.
Additionally, Dr. Al-Mudhaf expressed his thanks and appreciation to the Bank’s employees for their dedication and hard work, underlining that AUB has a great pride in its human wealth, which it considers the key pillar of the Bank’s continued success and progress.
Commenting on the bank’s financial performance in the first half, Mrs. Jehad Saud Al-Humaidhi, Chief Executive Officer and Board Member of Ahli United Bank said, “We continue to maintain satisfactory profitability in the first half of 2023, despite all the challenges facing the economy in general. Through the resilience of financial management and prudent risk-taking, we have achieved this balanced performance, which boosts our confidence in our business model and our ability to achieve the bank’s strategic objectives.”
Al-Humaidhi added: “We continue to focus our efforts to keep pace with and meet customers’ evolving needs. We take pride in affirming our leading role and prominent position, as well as our ability to deliver the best offerings and services that rely on innovative and advanced digital technologies, ensuring the highest levels of banking services for our customers. The bank also persists in maintaining its position at the forefront of local banks in Kuwait by providing distinguished financial financing solutions and savings schemes.”
Al-Humaidhi emphasized that Ahli United Bank continues its resolute pursuit of digital transformation, driven by a strategic vision aimed at enriching the digital experience for the bank’s esteemed customers. The bank unwavering commitment lies in catering to all its customers’ needs, surpassing their expectations, and providing them with cutting-edge, innovative banking solutions and services. She underscored that digital transformation has become an imperative for all institutions, standing as the optimal choice to advance the mechanisms of banking operations.
Al-Humaidhi pointed that AUB pursues endeavors to enhance its banking competencies and provides all means of support for its human resources through an attractive work environment capable of developing business. Al-Humaidhi also underlined that AUB is moving at an accelerated pace towards achieving comprehensive sustainability
Al-Humaidhi emphasized that AUB, being the first bank to run its operations in Kuwait more than 80 years ago, has been able to play a prominent role in social work. Over these long years, AUB has proven its ability to provide a role model in social responsibility and sustainable development. Moreover, it provides a groundbreaking and distinguished experience in social responsibility, as are its enduring achievements at all fronts.
At conclusion, Al-Humaidhi conveyed her sincere appreciations to the Central Bank of Kuwait and the Chairman and members of the Board of Directors of Ahli United Bank. She, also extended heartfelt thanks and appreciation the bank’s shareholders and customers. Further, Al-Humaidhi expressed deep appreciation to the bank’s Executive Management team and all its employees for their outstanding efforts and dedication in their work.
Bank Credit Ratings
Ahli United Bank enjoys prestigious international ratings. On May 2, 2023, Fitch Ratings, the International Credit Rating Agency, has affirmed Ahli United Bank K.S.C.P.’s (AUBK) Long-Term Issuer Default Rating (IDR) at ‘A’ with Stable Outlook, Short-Term Issuer Default Rating (IDR) ‘F1’ and Government Support Rating (GSR) ‘a’.
In the first half of 2023, Ahli United Bank received numerous awards and accolades. The global prestigious magazine MEED honored the efforts and achievements of Mrs. Jehad Al-Humaidhi; Chief Executive Officer and Board Member of Ahli United Bank by awarding her the MENA Islamic Banker of the Year at the MENA Banking Excellence Awards 2023. The award recognizes Al-Humaidhi’s exceptional leadership throughout her professional career spanning over 38 years and her support for technological innovation in the banking sector, diverse expertise, and active membership in several boards of different institutions.
In recognition of its exceptional efforts in customer protection and fraud prevention, Ahli United Bank has been honored with the Excellence in Customer Protection-Fraud Control award in the Middle East and North Africa 2023 by MEED, the renowned international magazine. The bank received this award based on its implementation of advanced security measures, fraud detection systems, and customer protection protocols.
Moreover, Ahli United Bank has been awarded Best Remittance Service in the Middle East and North Africa for 2023 by MEED magazine. This recognition is attributed to the bank’s collaboration with SWIFT Payment Controls, SWIFT GPI, Afaq, and KNPS, which have provided the bank with the latest technologies and security features. These partnerships have given the bank a significant competitive advantage in the region. Additionally, the bank stands out for its fast, secure, and convenient online money transfer platform, offering competitive exchange rates.
Furthermore, Ahli United Bank won Best Bank in Internal Sharia Audit Award in Kuwait for the year 2023 by the renowned International Finance magazine. This recognition is based on the efficiency and effectiveness of the bank’s internal Sharia control system, its framework for assessing Sharia risks, the Sharia audit procedures guide, and effective Sharia training methods. The bank also demonstrated effective implementation of Sharia governance instructions in line with a well-structured internal Sharia audit framework, ensuring the efficiency and effectiveness of Sharia audit operations. In addition, the bank’s contribution to the promotion of Islamic banking was highlighted through the development and dissemination of Islamic financial awareness materials on its official social media channels. The bank’s internal Sharia audit team exhibited the necessary knowledge and skills to excel in their duties.
In addition to the aforementioned achievements, Ahli United Bank received the prestigious ISO 9001:2015 certification for information technology infrastructure for the second year in a row. This reflects the bank’s leadership and excellence in the field of information technology and its ability to adhere to the highest standards of technical services to ensure quality, continuity, and security for all banking operations and services provided to its customers. ISO 9001:2015 is an internationally recognized quality management standard developed and published by the International Organization for Standardization (ISO).
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